Your valuation fails the simplest fundamental, which is the share % of what the VC will get after the seed round. In VC logic, they will be getting around 14,3% for the same amount of money than they would get by giving the same 1 million for almost half the value. In multiple dilutions at inflated figures and the "A" round where the lead VC grabs 30% (no matter how much money they give), the seed guy stands to be th…
1 on 11 isn't as realistic, because the VC would compete by wanting to put in more money. So 3 on 11 to 3 on 30.
The point of this post is to illustrate the math, but most importantly the second half is to show that this math isn't quite the right way to look at it. It is instructive to those that don't know much about this stuff.
I don't think a more complicated scenario would help explain this. For example, I left out option pools.